Can I Get a Mortgage After a Trust Deed?

Are you currently in debt and considering entering into a Trust Deed? As a leading provider of debt help, we have the knowledge and experience to expertly advise you on the subject of Trust Deeds in Scotland.

One of the most common questions asked by people applying for a Trust Deed is whether it will affect their ability to purchase property in the future. Whilst we can say that it is still possible to receive a mortgage, we urge those who are thinking of applying for a Trust Deed to be aware of the effect it will have on their credit rating.

Getting a Mortgage isn’t Easy

In general, mortgage lenders have become a lot stricter. Regardless of whether you’ve been in a Trust Deed or not, it’s a difficult process. Having a Trust Deed on your credit record is going to make things undoubtedly more challenging, but not altogether impossible.

Your credit rating will be affected for up to 6 years afterwards, giving you plenty of time to save a substantial deposit. Also, to increase the chance of getting a mortgage after being discharged from a Trust Deed, we advise you to consider the following things.

Pay Everything on Time

Don’t be tempted to fall back into the bad habits that got you into debt to begin with. After being discharged from your Trust Deed, you want to continue being an A-star customer. Don’t miss or skip payments or be tempted to run up a new debt on any credit cards.

Continue on the Same Budget

Don’t see the money that you’re saving from not paying the Trust Deed as ‘free money’; instead continue to put the money away. Treat yourself to a few treats now and again, but as a whole, put this money away to save for a deposit for your future home.

Don’t Spend More Than You Make

A lot of people run into debt because they are spending a lot more than they can actually afford. You should set yourself a realistic budget and stick to this every month. This means that you don’t have to spend hundreds on shopping each month “just in case” – set yourself a shopping budget and stick well within it.

Start to Repair the Damage to Your Credit Rating

You’ve been in a Trust Deed which means that you were in debt beforehand. This would have unfortunately played havoc on your credit rating. This is frustrating, but it’s not impossible to fix. You just need to have patience. Whilst you probably don’t want to risk opening a credit card, doing so can help your credit. You just need to make sure that you pay it off in full every month. Keep checking your credit score – especially before applying for any credit.

Before making any final decisions, we urge you to seek the advice of a professional. Our expert team here at Debt Advisory Services (Scotland) Limited will be more than happy to sit down with you to discuss all the options available.

Contact us by calling 0800 011 2322 and a member of team will be happy to make you an appointment.